Geneko, your statement "They are peace of bet from every market move." does not describe how the peg works and 'they' is ambiguous in your statement.

Ok I all try with something more accurate. How about:

They are insurance policies against future Bitusd and Usd price difference.

"They are insurance policies against future Bitusd and Usd price difference." ... this is getting closer, but "They" is still undefined and BitUSD and USD price difference shouldn't ever be much..

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Buying BitUSD within BitShares X is like buying part of an index fund that tracks the USD value of a share(s) of the stock exchange itself (BTS).

This seems like it is going in the right direction... but doesn't quite seem accurate for me.

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For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

BitUSD is like Gold standard system of earlier central bank, endorsed by Gov credit, e.g. one USD is endorsed by equal priced Gold. But BitUSD is endorsed by the similar concept of BTS(priced in USD for BitUSD) standard system, driven by margin and the market consensus created when some one created "BitUSD" relative to USD, gave the "USD" name, and the others followers. Any tend to deviate BitUSD price from USD will create long/short chance for the supporters/believers of the USD priced BTS standard system, which should be the mainstream market player of BTS X to avoid 51% attack to the BitUSD price feed.

« Last Edit: January 16, 2014, 03:17:23 am by HackFisher »

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Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

To buy 1 bitshare from a exchange cost you 10 USD , each bitshare gives you 10 BitUSD. If the buying price of 1 bitshare goes down to 5 USD then your bitshare will only be worth 5 BitUSD. So it does not matter how the price of bitshare fluctuates 1 BitUSD it will always be equal to 1 real USD.

Bitshares X it is a set of rules that use market consensus to force the value of a bitasset to always be equal to the value of the object that represents ex: BitUSD.

To buy 1 bitshare from a exchange cost you 10 USD , each bitshare gives you 10 BitUSD. If the buying price of 1 bitshare goes down to 5 USD then your bitshare will only be worth 5 BitUSD. So it does not matter how the price of bitshare fluctuates 1 BitUSD it will always be equal to 1 real USD.

Bitshares X it is a set of rules that use market consensus to force the value of a bitasset to always be equal to the value of the object that represents ex: BitUSD.

The second paragraph states what happens and doesn't help explain how.

The 3rd paragraph says how in the most vague way possible to the point of not being helpful to newbies other than accepting it on faith. "market consensus to force value to always be equal"

This is a very challenging thing to explain concisely which is why this bounty is here.

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For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

BitShares provide a decentralized price feed. The only common point people all across the network have is that the "BitUSD" asset has the words "USD" in it. If someone wants to "attack" this price feed and cause it to deviate from real USD/BTS, and they don't have a large majority of BTS, the opposing market forces from the rest of the network are enough to push the price down and take money from the attacker, because everyone else has the choice of either "cooperate towards USD and make money if other do too" or "defect and hope to make money if enough people coincidentally defect in the same direction as you".

Toast gets a 1 PTS tip... this is an accurate description though it is can certainly be improved upon... note this bounty pays for multiple answers...

For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

After all, I have to change real USD with my bitUSD, because I can't buy food with my bitUSD.But who can guarentee the exchange?maybe 1k bitUSD, maybe 100k bitUSD. If nobody buy my bitUSD, should I sell it more cheaper?

To buy 1 bitshare from a exchange cost you 10 USD , each bitshare gives you 10 BitUSD. If the buying price of 1 bitshare goes down to 5 USD then your bitshare will only be worth 5 BitUSD. So it does not matter how the price of bitshare fluctuates 1 BitUSD it will always be equal to 1 real USD.

Bitshares X it is a set of rules that use market consensus to force the value of a bitasset to always be equal to the value of the object that represents ex: BitUSD.

I think we need more benefit to attract the bank to offer the exchange service.And we need some methord to guarentee the exchange not depend on trust, so we can exchange with anybody. but I don't know howto implement this.

After all, I have to change real USD with my bitUSD, because I can't buy food with my bitUSD.But who can guarentee the exchange?maybe 1k bitUSD, maybe 100k bitUSD. If nobody buy my bitUSD, should I sell it more cheaper?

To buy 1 bitshare from a exchange cost you 10 USD , each bitshare gives you 10 BitUSD. If the buying price of 1 bitshare goes down to 5 USD then your bitshare will only be worth 5 BitUSD. So it does not matter how the price of bitshare fluctuates 1 BitUSD it will always be equal to 1 real USD.

Bitshares X it is a set of rules that use market consensus to force the value of a bitasset to always be equal to the value of the object that represents ex: BitUSD.

Suppose some musicians make bets about whose instrument is the most in tune. They all bet about whether anyone will be out of tune, and anyone who is not gets rewarded. They decide who is out of tune by comparing each individual to the average pitch of everyone playing together.

Every musician can either use his various reference instruments and tuners to try to get the pitch as close to "correct" as possible, but they can't share such reference points between them directly. "correct" means the closest to the pitch that people named "A#" or whatever the current bet is, notice how that can mean slightly different things to different people in different regions but they're close enough that they can average out to some sort of global consensus.

To be malicious, you have to collude with the majority of musicians by stake (stake could be like, volume of their instrument) to play a particular named pitch "incorrectly". Only then can divert the price and screw someone over, but if you try to do so without such secret supermajority collusion you'll just lose money because people will still just think you're out of tune based on their "locally credible" sources.

That's the theory, anyway.

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Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Suppose some musicians make bets about whose instrument is the most in tune. They all bet about whether anyone will be out of tune, and anyone who is not gets rewarded. They decide who is out of tune by comparing each individual to the average pitch of everyone playing together.

Every musician can either use his various reference instruments and tuners to try to get the pitch as close to "correct" as possible, but they can't share such reference points between them directly. "correct" means the closest to the pitch that people named "A#" or whatever the current bet is, notice how that can mean slightly different things to different people in different regions but they're close enough that they can average out to some sort of global consensus.

To be malicious, you have to collude with the majority of musicians by stake (stake could be like, volume of their instrument) to play a particular named pitch "incorrectly". Only then can divert the price and screw someone over, but if you try to do so without such secret supermajority collusion you'll just lose money because people will still just think you're out of tune based on their "locally credible" sources.

That's the theory, anyway.

And another one for the toast master!

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For the latest updates checkout my blog: http://bytemaster.bitshares.orgAnything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else. These are merely my opinions and I reserve the right to change them at any time.

Suppose some musicians make bets about whose instrument is the most in tune. They all bet about whether anyone will be out of tune, and anyone who is not gets rewarded. They decide who is out of tune by comparing each individual to the average pitch of everyone playing together.

Every musician can either use his various reference instruments and tuners to try to get the pitch as close to "correct" as possible, but they can't share such reference points between them directly. "correct" means the closest to the pitch that people named "A#" or whatever the current bet is, notice how that can mean slightly different things to different people in different regions but they're close enough that they can average out to some sort of global consensus.

To be malicious, you have to collude with the majority of musicians by stake (stake could be like, volume of their instrument) to play a particular named pitch "incorrectly". Only then can divert the price and screw someone over, but if you try to do so without such secret supermajority collusion you'll just lose money because people will still just think you're out of tune based on their "locally credible" sources.

That's the theory, anyway.

And another one for the toast master!

Toast very nicely describes BitUSD as a bet that rewards proximity to consensus at close (like a spread option), but what does it mean then to own BitUSD? I somehow came to think of BitUSD as more asset than option/bet but then I'm stuck with reconciling how it could be both an underlying asset that grows in value and also an option that rewards proximity to USD. Could it be said that PTS&AGS ownership will earn a number of shares of BitUSD bets on a change in value between BitShares and USD such that BitShares are paid if USD value decreases and BitUSD ownership is reduced if USD value increases? I need a refresher on how these prediction markets are supposed to work because I suspect I'm way off.

A bitUSD exists only if the market has found a bitusd/btc ratio and people have different beliefs about the sign of the first derivative of that ratio

Owning a bitusd is like owning a piece of paper that says the bank will buy back the bitusd for $1 worth or bts, which means taking collateral from short positions on the prediction market if the value of bts starts falling relative to usd

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Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.